IIA-CIA-PART2 practice questions 421–430

1. Question 421 · 475 in bank

   Which of the following information is most appropriate for the chief audit executive to share when coordinating audit plans with other internal and external assurance providers?

   • AObjectives, scope, and timing at a high level to support coordination while adhering to confidentiality requirements.
   • BThe area and timing of the audit engagement to ensure confidentiality and avoid conflict of interest.
   • CAll plan information, including risk assessments, planned tests, and past results to maximize the opportunity for coordination and efficiency with internal and external providers.
   • DNo information should be shared with internal and external providers, as it could introduce bias into the engagement results.

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   Answer: B

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2. Question 422 · 475 in bank

   According to IIA guidance, which of the following would be considered necessary for a one-person audit function?

   • AA formalized technical audit manual.
   • BA written administrative audit manual.
   • CA memorandum stating policies and procedures.
   • DA comprehensive policy and procedure manual.

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   Answer: C

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3. Question 423 · 475 in bank

   During the planning phase of an assurance engagement, an internal auditor seeks to gain an understanding of how well the area under review is accomplishing its objectives. Which of the following information-gathering techniques is the auditor most likely to use?

   • AA review of the key performance indicators of the area under review.
   • BA walkthrough of the key processes of the area under review.
   • CAn interview with the manager regarding the area's business plan.
   • DA review of previous audit and follow-up results of the area under review.

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   Answer: B

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4. Question 424 · 475 in bank

   What is the purpose of an internal control questionnaire?

   • ATo gather information from a sample of people who are geographically dispersed.
   • BTo assess risks that could prevent an audited area from achieving its objectives.
   • CTo evaluate the level of compliance of remote offices with centrally designed procedures.
   • DTo perform testing of controls more frequently.

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   Answer: B

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5. Question 425 · 475 in bank

   Which of the following engagement techniques would be best to meet the objective of identifying a personal conflict-of-interest situation affecting an organization's procurement function?

   • AInquiry.
   • BAnalytical review.
   • CObservation.
   • DInspection of documents.

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   Answer: A

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6. Question 426 · 475 in bank

   Besides a chief audit executive's professional experience, what determines the frequency and approach to assessing residual risk?

   • AThe frequency of executing the internal audit engagements.
   • BThe frequency of changes in the organization's environment.
   • CThe expectations set by the board and senior management.
   • DThe expectations set by operating management and senior management.

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   Answer: B

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7. Question 427 · 475 in bank

   Which of the following activities is an internal auditor most likely to perform when establishing the objectives of an assurance engagement?

   • ADiscuss the internal audit risk assessment, including applicable risks and objectives, with internal audit management.
   • BPerform a walk-through of the process under review to determine whether controls were operating effectively.
   • CIdentify which controls will be tested and the sampling method to be used based on control risk.
   • DMeet with operational management to learn about any areas of concern and to agree on the engagement objectives.

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   Answer: A

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8. Question 428 · 475 in bank

   To compete in the global market. an organization is restructuring and consolidating many of its divisions. Prior to the consolidation, senior management requested assistance from the internal audit activity. Which of the following consulting services would be most appropriate in this situation?

   • AAssess controls for potential compliance issues that may affect the consolidation.
   • BBrief vendors on the potential risks that will occur without continued business.
   • CAdvise division managers on how to streamline operations for better efficiency.
   • DDetermine whether the organization's controls are effective in meeting business objectives.

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   Answer: C

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9. Question 429 · 475 in bank

   Which of the following statements is generally true regarding audit engagement planning?

   • AThe best source for detailed process information is senior management.
   • BAudit objectives should be general and do not change.
   • CComputer-assisted audit techniques are typically not useful during engagement planning.
   • DInternal auditors should prepare a detailed audit program for testing controls.

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   Answer: D

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10. Question 430 · 475 in bank

    Which of the following statements is consistent with IIA guidance regarding the use of mentoring for internal auditors?

    • AThe mentor and the internal auditor should opt for informal meetings even if it means that no formal documentation will be created.
    • BThe mentor relationship is usually not suitable for internal audit staff, as it does not lead to professional development.
    • CThe value of mentoring is derived primarily from the personal relationship between the two parties involved, and the mentor's level of relevant experience should not be a key factor.
    • DThe mentor should be the internal auditor's supervisor to ensure that the auditor's performance is assessed in a relevant and meaningful context.

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    Answer: D

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IIA-CIA-PART2 practice, question 421. 475 questions available.